Opening Boutiques Requires Planning and Paperwork

Nearly everyone who has held an office job has had a day, or several days, where they throw up their hands in frustration and vow to quit to fulfill their dream of opening a store selling handmade kitten mittens and other cat accessories. Before leaving your job, you should be aware of all the work required to open your own store. Not all of it is glamorous. Entrepreneurs who have run successful boutiques will tell you that starting a business requires so much more than selecting the scarves, earrings, or designer cat collars to sell. A great deal of research, planning, and paperwork is required before you start greeting customers.

One of the most important and labor-intensive steps in the process is developing a business plan. These documents are a way to understand how your enterprise is structured. They provide the owner with a picture of marketing, operations, finances, and staffing in a way that helps direct decision-making and measure goals.

People who have opened their own boutiques often say that developing their business plan was the most difficult step in the process. It is also one of the most important. A well thought out business plan can help secure bank loans or attract investors. Fortunately, there are a number of helpful resources available online, including business-specific examples, for when you are ready to prepare your business plan. Your plan should include the cost of rent, utilities, taxes, business licenses, inventory, supplies, staff and marketing.

Preparing to open your own shop also requires an exhausting amount of very boring paperwork. Boutiques require a number of permits from the state and local government in order to operate. Retail stores will need to sign up as sales tax collectors with their state government. Many states allow owners to complete this step online. You will also need an Employer ID Number from the Internal Revenue Service so that you can pay federal taxes.

Additionally, you will need to decide on a structure. In most states, your options will include forming a corporation, partnership, limited liability company, or sole proprietorship. Check with the Secretary of State’s office for information regarding the options in your state and the type of documentation required. Each of these structures affects your individual tax obligations and personal assets differently. Therefore, you may want to consult with your tax professional or attorney for advice on which of the options is the best fit for you.

Finally, some boutiques require a business license from the city. Clothing or accessory stores usually do not need a license. However, antique or secondhand shops often need a special license from the city. Your local Chamber of Commerce is a good source of information on particular requirements in your area.

Running your own shop can be an extremely rewarding way to earn a living. However, prospective entrepreneurs should be prepared to take on some of the more mundane tasks required before opening their doors.

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